7. You are the finance director of a power generation company that needs to buy 100,000 barrels of oil in 12 months. You want to guarantee the price you pay for the oil now because oil prices seem to you unusually volatile. You should:

A

Take a short position on oil futures.

B

Take a long position on calls on oil.

C

Take a long position on oil futures.

D

Take a short position on puts on oil.

E

I do not wish to answer this question.

F

Take a short position on calls on oil.